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Honsel continues restructuring process according to plan

Additional agreements with its main shareholder RHJ International S.A. (RHJI) and a lenders’ consortium enable Honsel AG to secure its future in an extremely challenging market environment. Honsel has used the standstill period, during which the payment of interest rates was put on hold and which is expiring by end of April 2009, to achieve major milestones in the restructuring process of its operations and its capital side.

In the last weeks, Honsel has presented an aggressive business plan for the coming years, which allows for compensating the massive slump in sales in the automotive industry. At the same time, its main shareholder RHJI and a consortium of the major lenders have agreed on a new capital structure. In return for a considerable waiving of debt, the lenders will receive a minority share of 49 % in the Company. RHJI will remain the main shareholder and will inject fresh capital. Until May 22nd, 2009 all creditors involved have the opportunity to evaluate the extensive restructuring documents in detail and to consent to a lock-up agreement. With this lock-up agreement, the standstill period will be extended automatically until closing of the transaction.

In the meantime, Honsel continues to fulfil the conditions precedent for the restructuring of the capital side. In this process, the Company gains support from major customers and suppliers as well as RHJI to grant the necessary liquidity headroom for a sustainable operative restructuring. In addition, together with the employee representatives of those sites strongly affected by the decline in volumes, Honsel achieved viable solutions to reduce personnel cost and adapt its capacities. These agreements for Meschede, Soest, Nuttlar and Nürnberg will be finalized in the coming days. As all main stakeholders – shareholder, lenders, customers, suppliers and employees – have proven their willingness to substantially contribute to the restructuring of Honsel, the Company expects that refinancing will be closed within the second half of June 2009.

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